Abstract
This study examines the effect of foreign ownership on firm value by affecting corporate policies as a corporate governance monitoring mechanism and contributes to the literature on the role of foreign shareholdings which are especially important for emerging markets in three stands: increased level of board independence which serves to eliminate the conflicts of interest among different stakeholders within a company, a dividend policy disciplining the management of free cash flows and an investment policy focusing on more research and development (innovation), enabling high growth opportunities and profitable investments.